Bengaluru: The policy changes the government announced on Wednesday for the e-commerce sector would have long term implications, said leading e-tailer Flipkart on Friday.
“The government policy changes will have long term implications for the evolution of the promising sector and whole ecosystem,” said the city-based e-commerce major in an e-mail to IANS.
The renewed policy on Foreign Direct Investment (FDI) in e-commerce envisages a level playing field for e-tailers and offline traders, who dominate the country’s retail market with about 90 per cent share.
“It is important that a broad market-driven framework be developed through a consultative process in order to drive the industry forward,” said the company, in which the world’s largest retailer Walmart bought 77 per cent equity stake in May for a whopping $16 billion (Rs 1,07,662 crore).
According to the Commerce Ministry notification, e-commerce entities would engage only in business-to-business and not in business-to-consumer e-commerce, for buying and selling goods and services, including digital products over the digital and electronic network.
The revised policy, which will be in force from February 1, 2019, barred e-tail firms from selling products of companies in which they hold equity and prohibited the firms from mandating any company to sell its products exclusively on their e-commerce platforms alone. The renewed policy also prevents the e-tail portals from directly and indirectly influencing the price of goods and services.
“In the span of a decade, the e-commerce industry has revolutionised the way consumers connect with sellers and local manufacturers, providing tremendous value to both and to the country,” Flipkart asserted. (IANS)
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